Question

How sustainable is Walmart's market position in the U.S.A? Please evaluate their market opportunity abroad (Hint: You should segment this down to the regions of the world where they have the greatest exposure).

Answer 1

Walmart is a retail company of American origin and it is in the mature stage of a company's life cycle. it does not have much scope to acquire the market share as it is already having a chunk of market share of America economy. At such stage of companies life cycle, company most often tend to use its cash reserve to the maximum possible advantage to expand.

its market share in US in well maintained and it is expected to be retained as there are lesser of the competitors even JCPenney have gone bust. Amazon is trying to enter the retail market but it can only do it through the digital presence as it does not have much of the physical presence and it is not able to snatch the market away from Walmart and it could be reflected through the share prices recharge as share prices of Walmart hit continuously 52 week high during the times of covid-19 crisis

It is also trying to expand through better and optimum utilisation of its cash reserves like it could have been seen recently.it is acquiring a lot of companies in other markets which have a lot of potential to grow like it has recently acquired as stake in Flipkart which is a major online giant in India and which is specialised in delivering door to door items.this acquisitions will help to gain a control over the supply chain and help it return its market share.

So effective acquisitions of Walmart can lead to Survival and growth into new markets. It should be completely beneficial for the long run as it will generate new market to operate into.